Donald Trump's latest tweet storm about the US trade war with China is expected to see the Australian share market start lower this week. The US president fanned the trade flames by firing off a series of incendiary tweets over the weekend, ramping up tariffs against Beijing and ordering American companies to get out of China. Wall Street suffered big falls as a consequence, with the Dow Jones finishing down 2.4 per cent. There were even bigger falls on the Nasdaq technology index, which was down by 3 per cent. The fallout was largely limited to the two global superpowers, with the Canadian and European markets not as badly affected. The Australian market is expected to start the week down by 86 points or 1.3 per cent. CommSec chief economist Craig James said the trade spat between the US and China was creating uncertainty in other parts of the world. "It's all about the US-China trade war and it's all about Donald Trump and his tweets on the situation," he told AAP. "It's all about what it means for global growth when you have the two biggest nations in the world trading tariffs against one another. "It creates uncertainty about new investment, new employment, and that's the issue at hand." There will be some bright sparks on the Australian market, with the gold price up by $29.10 an ounce or 1.9 per cent. The iron-ore price also rose by $3.95 or 4.6 per cent. Stocks in BHP, Rio Tinto and Fortescue are expected to benefit. "We shouldn't have as big a fall as the US markets," Mr James said. "That's easy to say, but we just have to watch what the US futures market is saying as we go through Monday's session." There are still about 40 of the ASX 200 companies to report their earnings this season. Mr James said it had been a reasonable season considering the US-China trade war, Brexit debacle, federal election and weakness of the housing market. "It could have been a whole lot worse." US central bankers met in Wyoming over the weekend and fresh economic data is due out of China this Friday. Mr James is also keeping an eye on the French resort town of Biarritz, where seven of the world's most powerful leaders have arrived for the G7 summit. "We will be looking for any comments by the major leaders about any discussions they've had with Donald Trump, to see whether any progress has been made to get him and the Chinese leader to back off from this tit-for-tat tariff battle." Australian Associated Press

Trump tweets temper Aussie stock markets

A lower start is expected for Australia's share market due to Donald Trump's China trade rhetoric.

Donald Trump's latest tweet storm about the US trade war with China is expected to see the Australian share market start lower this week.

The US president fanned the trade flames by firing off a series of incendiary tweets over the weekend, ramping up tariffs against Beijing and ordering American companies to get out of China.

Wall Street suffered big falls as a consequence, with the Dow Jones finishing down 2.4 per cent.

There were even bigger falls on the Nasdaq technology index, which was down by 3 per cent.

The fallout was largely limited to the two global superpowers, with the Canadian and European markets not as badly affected.

The Australian market is expected to start the week down by 86 points or 1.3 per cent.

CommSec chief economist Craig James said the trade spat between the US and China was creating uncertainty in other parts of the world.

"It's all about the US-China trade war and it's all about Donald Trump and his tweets on the situation," he told AAP.

"It's all about what it means for global growth when you have the two biggest nations in the world trading tariffs against one another.

"It creates uncertainty about new investment, new employment, and that's the issue at hand."

There will be some bright sparks on the Australian market, with the gold price up by $29.10 an ounce or 1.9 per cent.

The iron-ore price also rose by $3.95 or 4.6 per cent. Stocks in BHP, Rio Tinto and Fortescue are expected to benefit.

"We shouldn't have as big a fall as the US markets," Mr James said.

"That's easy to say, but we just have to watch what the US futures market is saying as we go through Monday's session."

There are still about 40 of the ASX 200 companies to report their earnings this season.

Mr James said it had been a reasonable season considering the US-China trade war, Brexit debacle, federal election and weakness of the housing market.

"It could have been a whole lot worse."

US central bankers met in Wyoming over the weekend and fresh economic data is due out of China this Friday.

Mr James is also keeping an eye on the French resort town of Biarritz, where seven of the world's most powerful leaders have arrived for the G7 summit.

"We will be looking for any comments by the major leaders about any discussions they've had with Donald Trump, to see whether any progress has been made to get him and the Chinese leader to back off from this tit-for-tat tariff battle."